Spots N Dots
The Daily News Of TV Sales
June5, 2017
AUTOMOTIVE DEALERSHIP SALES WILL PICK UP
FIRST QUARTER WAS UNUSUALLY SLOW
There’s very little that’s worse to a local media seller than building rapport with a local auto dealer only to see the dealership sold and someone else take over the buying for the account.
Only 80 “rooftops” changed hands in the first quarter according to the quarterly report done by automotive consultancy Haig Partners. That was 29% below the deals made in the first quarter of 2016, but the lull is likely to come to an end.
Alan Haig said there were a few reasons for the slowdown in deals. One may have been the new administration taking over, with both buyers and sellers waiting to see if there would be any major revisions in tax rules. Perhaps an even greater deterrent was that with most of the industry accepting the fact that sales would be flat or down this year, buyers became concerned about future profits and sellers were not willing to accept the prices that were offered. “Blue sky value,” generally the amount asked by the seller above the book value of the business, has passed its peak according to Haig and will stay low unless there is a significant tax cut coming that would benefit sellers. Looking ahead to transactions for the rest of the year, Haig says there’s a growing realization on the part of potential sellers that they will have to accept current offers or retain the dealership for several more years until dealership values increase again.
Erin Kerrigan, managing director of Kerrigan Advisors is optimistic about deals coming for the rest of the year. She sees the year tracking towards 240 transactions (many encompassing multiple “rooftops”) which could make the year finish ahead of the record for deals that was established in 2015.
The six major publicly-traded automotive groups have been using their cash to do other things than buy more stores lately, including spending a combined $808 million in stock buybacks in the first quarter of 2016. They have also been spending millions on other activities such as starting used-car-only operations and collision centers, and some are making foreign acquisitions.
But with their stock prices generally up now, Kerrigan told Automotive News the publicly-traded groups are now choosing not to buy back more stock (just $36 million in buybacks in the first quarter compared to $808 million in 2016’s first quarter) in favor of building up cash reserves. “They are either considering acquisitions again or they’re preparing for other expansion…or worst case, they are shoring up cash reserves if they think industry sales are turning,” Haig believes.
ADVERTISER NEWS
While Ford’s victory over General Motors in May sales was a noteworthy achievement, local dealers may not be as happy as factory execs. The win came largely from an 8.4% gain in fleet sales which made up 34.4% of total corporate sales, while retail sales at dealerships were actually down 0.8%.....Kansas-based NPC International is buying 140 Wendy’s restaurants and will become the chain’s largest franchisee in a “buy-and-flip” deal in which former owner DavCosold the stores back to Wendy’s which sold them to NPC. DavCo, which Wendy’s sued two years ago over its refusal to remodel restaurants, is no longer a Wendy’s franchisee at all. NPC is also a huge franchisee of Pizza Hut, where it has more than 1200 units……McDonald’s announced another expansion of its delivery capacities through UberEats, saying it now has delivery available in more than 2000 U.S. locations and will be up to 3500 by the end of this month. Results from stores already delivering show 60% of orders come during the evening and late night dayparts where Mickey D’s has “underutilized capacity” and with 75% of U.S. population living within three miles of a McDonald’s, the chain believes it can do delivery more efficiently than its competitors……Costco had a good May, with domestic same-store sales up 5.2% including gas sales; 4.5% excluding gas. Both numbers were well ahead of year-to-date results……In another Costco note, the warehouse chain will add GE and GE Profile brands to its assortment of major appliances. The GE brand for appliances is now owned by Chinese company Qingdao Haier……Sears Hometown and Outlet Stores reported a combined same-store sales drop of 7.3% for its first fiscal quarter, citing “continued hyper-competitive pricing in the home appliances category” and weather that impacted the lawn and garden category. The Hometown stores’ comps were down 6.8%, a little better than the Outlet stores’ 8.3% fall…..We still have no idea if Fred’s will ever get to buy all those Rite Aid stores, but in the meantime the chain needs to do business as normal. May comp store sales were up 0.8% although total sales were down 3.1% after having closed 39 stores during the first quarter……Dollar General same-store sales were up 0.7% as traffic fell but the average ticket rose. Including the Dollar Express stores it’s buying and converting, the roster of locations that’s already over 12,000 should grow by about 1300 units this year……Gymboree missed making an interest payment that was due last week and is now expected to file for bankruptcy protection perhaps as early as this week. Lenders are expected to “reset the footprint,” likely resulting in store closings....Meal-kit delivery company Blue Apron has filed paperwork with the SEC that would list the company on the New York Stock Exchange under the symbol APRN. The company hopes to raise $100 million in the IPO. Blue Apron revenue grew from $78 million in 2014 to $795 million in 2016, but at the same time its losses increased to $55 million last year. In March, Blue Apron had just over 1 million customers who average 4.1 orders per person.
NETWORK NEWS
Mark-Paul Gosselaar(Pitch) has been selected for a starring role in a new off-cycle pilot drama for Fox. The Passage is based on author Justin Cronin’s bestselling fantasy book trilogy. Also included in the cast are child actress Saniyya Sidney (American Horror Story), Genesis Rodriquez (Time After Time), Brianna Howey (The Exorcist), BJ Britt (Behind Enemy Lines), and Jennifer Ferrin(Time After Time). The pilot is described as an epic, character-driven thriller that morphs into a post-apocalyptic odyssey. The pilot begins shooting in Atlanta this month……The new NBC newsmagazine show Sunday Night with Megyn Kelly is expected to feature an interview with controversial conservative firebrand Alex Jones in the coming weeks. Jones said on his Infowarsonline program last Thursday that he is set for a one-on-one with Kelly next week. Jones said he would challenge Kelly about statements she made during her previous tenure at Fox News. He went on to say that the possible Kelly interview marks a rare example of his agreeing to sit-down with a mainstream media figure, pointing out that he has turned down many other recent offers.…ABC will air the third installment of Truth and Lies on Friday, June 16th at 9 PM (ET). Truth and Lies: Watergate will chronical the events leading up to and surrounding the Watergate scandal. The two-hour special will feature home movies taken by President Richard Nixon’s top White House aides and interviews with convicted officials and the journalists who broke the story…… Telemundo will air more than 200 hours of programming surrounding its Spanish-language coverage of the 2017 Confederations Cup, which takes place in Russia June 17th through July 2nd. The TV network will air all matches, with 14 on Telemundo and two on Universo. Viewers can also watch the games streamed on TelemundoDeportes.com and on the Telemundo DeportesEn Vivo app. Telemundo will also provide pre-game and post-game coverage, as well as analysis on TelemundoDeportes.com……CBS announced season premiere dates for its fall line-up with two new comedies getting special previews on Monday, September 25th. The Big Bang Theory prequel Young Sheldon will preview on that night at 9 PM (ET) following the season 11 premiere of The Big Bang Theory. Me, Myself, and I will have its series debut at 9:30 PM (ET) that same night after the second season premiere of Kevin Can Wait. The series debut of Seal Team airs at 9 PM (ET) on Wednesday, September 27th, with Wisdom of the Crowd beginning its run on Sunday, October 1st at 8:30 PM (ET).
DONE DEALS
Sinclair Broadcasting Group has announced executive changes to take place immediately. The company has named Robert WeisbordSenior Vice President, Chief Operating Officer, Sinclair Digital. In addition, Sinclair has named J.W. Linkenaugeras Vice President of Advanced Advertising Support Operations.
Sinclair also named Joseph FishleighGM of WLOS (ABC) in the Greenville-Spartanburg-Ashville-Anderson, SC market. Fishleigh takes over following the retirement of Jack Connors.
COMPETITIVE INFO
Three major cable news networks are still counting the money following the big presendential election year. Total revenue was up a collective 19%, reports Mediapost.
According to Pew Research Center analysis of SNL Kagan data, the combined revenue from CNN, Fox News Channel, and MSNBC totaled $4.76 billion in 2016, compared to $3.99 billion in 2015.
Ad revenue for the three networks rose 34% to $1.95 billion from $1.45 billion for the year. Looking at the cable financial news networks, CNBC, Fox Business, and Bloomberg had flat revenues at $383 million.
Meanwhile, another competitor for ad dollars had a terrible year.
Total daily newspaper circulation in fell an estimated 8% to 35 million for weekday papers, and 38 millioin for Sunday, according to the latest annual Pew Research Center study. Total estimated newspaper ad revenue also declined. Pew estimates for 2016, ad revenue was $18 billion, a 10% decrease from 2015. Mediapost also reports that digital ads accounted for 29% of total newspapers advertising revenue in 2016, up from a quarter in 2015.
2016 average circulation for the top 20 alternative weekly papers is just over 61,000, a 6% decline from 2015.
ECONOMIC NEWS
New jobs created during May slowed down a bit to 138,000 but the overall unemployment rate dropped to 4.3%--the lowest reading since May, 2001. “Given reports that job openings are near all-time highs, it suggests that businesses are struggling to fill these positions in an increasingly tighter market,” the Chief Economist for S&P Global Ratings commented. Not only are more people working, average wages are up 2.5% compared to last year at this time, although some consider those increases to be modest given the low unemployment rate. There is one sector—and it’s easy to guess which it is—that’s losing jobs. The retail sector lost 6,100 jobs in May, the fourth straight month in which it shed workers, and it’s estimated retailers have issued close to 30,000 pink slips in the last twelve months. Outplacement firm Challenger, Gray & Christmas has tracked those jobs cuts with some of the most notable being 10,000 jobs lost at Macy’s, 4,00 at The Limited, 3,000 at Wet Seal and 5,500 at J.C. Penney.
BUSINESS BYTES
While the average transaction price of a new vehicle continues to climb ($33,261 in May, 2.6% more than in May, 2016) two factors are contributing to keep monthly payments affordable for most people. The fact that loans continue to get longer is well known—33.8% of loans made in the first quarter were for 73-84 months, about triple the amount of loans of that length eight years ago. However Edmunds.com is now reporting another factor—shoppers are willing to make larger down payments than before. It estimates down payments rose to an average of $3,801 in May, almost a record and an increase of $233 over May, 2016. “In our increasing credit-based culture where consumers are willing to finance everything from cellphones to vacations, more money up front shows car buyers aren’t completely sacrificing practicality in order to get the cars they truly want,” Edmunds Executive Director of Analysis Jessica Caldwell says.
A study of loyalty programs done by Bond Brand Loyalty finds that the average number of programs a consumer belongs to has grown to more than 14 from less than eleven just three years ago, but members of those programs actively engage with only about half the programs they’ve signed up for. Bond says marketers are spending more to maintain program satisfaction and it seems to be worth it—76% of loyalty members say programs are part of their relationship with brands and 67% say they modify the brands they purchase to maximize benefits. 81% agree loyalty programs make them more likely to continue doing business with that brand. Some of the top loyalty programs based on member satisfaction are Amazon Prime, Kroger Fuel Rewards, Walgreens Balance Rewards and Sheetz’ My Sheetz Card. Loyalty programs generally ranks lowest in telco service, apparel, automotive equipment and services and consumer package goods.
AVAILS
Hearst Television’s WMOR-TV, Tampa is seeking a dynamic Account Executive to sell their triopoly of stations and digital products. Individual must be self-motivated, results driven and creative. A proven track record in new business development along with strong negotiation skills is required. Bachelor’s Degree preferred or equivalent work experience preferred, experience in TV/Radio sales a plus. We are a destination company in a great market that offers a tremendous opportunity for the right person. CLICK HEREto apply. EOE.
Fox61/WCCT-TV (Tribune Media) in Hartford, CT has an immediate opening for an Account Executive. The successful candidate will be responsible for achieving sales goals, prospecting, developing a target list, building and delivering presentations and managing the sales process from start to finish. Media sales experience preferred with a proven track record in reaching revenue goals in broadcast television, digital and developing new business. The emphasis of the position will be to drive new, non-traditional business and increase sales. Please APPLY HERE. EOE.
KPNX 12 News in Phoenix, AZ is looking for the best Director of Sales in the country. The DOS will lead all sales efforts, manage a staff of sales managers and provide the strategy and vision to drive the sales team to success with the top priority of driving new business development efforts to grow enterprise revenue. Bachelor’s degree in marketing, business or related field, and a minimum of 10 years of media sales experience in a top 15 market. CLICK HEREfor more info or to apply now. EOE.
Digital Account Executive: KELO in Sioux Falls, SD seeks a new business ALL STAR to build long term relationships with new and existing clients as a trusted digital consultant. Cultivate current and prospective client relationships while identifying opportunities to expand these relationships by responding to client needs. Digital sales or sales related experience preferred, knowledge of Nielsen ratings is a plus. Full benefits package and unlimited income potential! Qualified applicants can APPLY HERE. EOE/M/F/V/D - Background check required.
ABC6 in Providence, Rhode Island is looking for a sales professional with sales experience to join this growing ABC affiliate as an Account Executive. We need an enthusiastic, accountable individual to work with local and regional clients– at the agency and local levels. This position is a great opportunity for someone looking for a move into a top 60 market. Please send resume to . No calls please. WLNE-TV/ABC6 is and equal opportunity employer.
I phoned a local restaurant to ask if it was on the north or south side of Main Street. The person on the other end answered, “That depends on which direction you’re coming from.”–Pat Thompson
Marriage is alright if you like someone coming home and telling you about their day in the middle of your movie.–FunnyTweeter.com
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SPOTS N DOTS
The Daily News Of TV Sales
June5, 2017
Phone: 888-884-2630